Toronto’s tourism scene just hit a major milestone, with visitors pouring a record $8.8 billion into the local economy in 2024. While the city hasn’t quite reached pre-pandemic visitor numbers, the spending figures tell a different story – one of higher-value tourism that’s reshaping how visitors interact with Canada’s largest city.
“Toronto’s visitor economy is proving once again to be an engine for the city, drawing almost 9 billion dollars of new money into our economy from across Canada, across the border and around the world,” explains Andrew Weir, President and CEO of Destination Toronto. This influx of tourism dollars has created ripple effects far beyond the hospitality sector, generating a total economic impact of $13 billion across industries from real estate to healthcare.
The real story here is in the international numbers. Despite making up just 30% of Toronto’s nine million visitors, international travelers drove 38% of all spending. This isn’t just random luck – it’s the result of targeted efforts to attract visitors from key markets like the U.S., U.K., and Germany who typically stay longer and spend more during their visits.
Toronto Mayor Olivia Chow emphasizes the city’s diverse appeal: “Toronto is the most diverse city in the world—with hundreds of vibrant, thriving neighbourhoods. In 2024, we welcomed Taylor Swift, the NHL All-Star Game and of course every year, TIFF, the largest film festival in North America.”
This shift toward high-value tourism is transforming the city’s hospitality landscape. Four major hotel brands are betting big on Toronto’s continued growth, with TOOR Hotel Toronto, Union Hotel Toronto, NOBU Hotel Toronto, and Le Meridien Pinnacle Toronto Hotel all planning to open their doors in 2025. The timing looks smart – visitor spending has created a $13 billion ripple effect across the city’s economy, touching everything from real estate to healthcare.
What’s particularly interesting is how this tourism boom is spreading beyond the usual downtown hotspots. New developments like Rogers Stadium at the former Downsview Airport Lands and the ongoing transformation of the Port Lands are creating fresh reasons for visitors to explore different parts of the city. Even Billy Bishop Airport is getting in on the action, adding U.S. pre-clearance facilities that should make it a more attractive option for American visitors.
The impact on Toronto’s bottom line is significant. As Weir points out, “The tax revenue generated by visitors last year was greater than $2 billion. In fact, without tourism, every family in Toronto would have had to pay $1,850 more just to maintain the same levels of government services across all three levels of government.”
While domestic tourism has bounced back to pre-pandemic levels, international visits are still catching up, running about 600,000 visitors shy of 2019 numbers. However, this gap might actually be working in Toronto’s favor – fewer total visitors but record-breaking spending suggests the city is successfully attracting a more lucrative tourism demographic.
The outlook for 2025 points to continued growth, with several key developments in the pipeline. Virgin Atlantic’s return to the Toronto-London route after a decades-long absence signals growing international confidence in the market. Meanwhile, attractions like Canada’s Wonderland’s new AlpenFury roller coaster and the debut of the women’s Northern Super League are adding fresh appeal to the city’s entertainment lineup.
As Toronto marks some significant milestones in 2025 – including 50th anniversaries for Hilton Toronto, Chelsea Hotel Toronto, and TIFF – the city’s tourism sector appears to be writing its own success story, one that’s less about visitor counts and more about creating lasting economic impact.
Dustin Fuhs is the Editor-in-Chief of 6ix Retail. He is the former Editor-in-Chief of Retail Insider, Canada’s most-read retail trade publication. He has over 20 years of experience in the retail, marketing, entertainment and hospitality industries, including with The Walt Disney Company, The Hockey Hall of Fame, Starbucks and Blockbuster.
Dustin was named as a RETHINK Retail Top Retail Expert in 2024 and 2025.